A higher value of interest coverage ratio ratio indicates __________ relative to debts.

higher profits

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lower profits

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average profits

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None of these

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Solution

The correct option is A
higher profits

A higher value of interest coverage ratio ratio indicates higher profits relative to debts.

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Similar questions

Q. A higher value of interest coverage ratio indicates relative to debts.

Higher working capital usually results in

(a) higher current ratio, higher risk and higher profits

(b) lower current ratio, higher risk and profits

(d) lower equity, lower risk and higher profits

Higher working capital usually results in:

(a) Higher current ratio, higher risk and higher profits

(b) Lower current ratio, higher risk and profits

(d) Lower equity, lower risk and higher profits

Q. coverage ratio is the ratio of profit before interest and tax to the interest on long-term debt.

A and B are partners sharing profits and losses in the ratio of 3:2. They admit C into the partnership for one-fourth share of the profits while A and B as between themselves sharing profits and losses equally. The new profit sharing ratio (NR) between A, B and C will be:

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A higher value of interest coverage ratio ratio indicates __________ relative to debts.

The correct option is A higher profits A higher value of interest coverage ratio ratio indicates higher profits relative to debts.

The correct option is A
higher profits

A higher value of interest coverage ratio ratio indicates higher profits relative to debts.